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Why Liquid Staking is the Way to True DeFi
By pooling staking assets of our users based on the projects they participate in, Tosdis EasyStake positions will give token holders a higher degree of freedom in managing their assets and will accelerate decentralized finance innovation. By allowing users to simultaneously stake and access services on the connected platforms — Polkadot, Tron, etc. — we are able to open up permissionless innovation for staking assets and enable other financial products to be simultaneously used.
We view Liquid Staking as the next logical step in perfecting the original PoS mechanism. In the eve of Ethereum’s migration to a Proof-of-Stake model, we are already aware of the core limitation of Proof-of-Stake protocols in the form of restrictions that
result in an inability to liquidate staked assets, e.g. the common unbonding period. Liquid staking solution will allow stakers to trade a representation of their staked assets and thus improve liquidity of staked assets.
The new approach to staking Tosdis offers is a step up from traditional PoS staking. Even Staking-as-a Service platforms and exchanges only allow users to stake the tokens of the blockchain that they’re contributing to. Thus participants often have to load up on the asset that they’re staking in order to increase their chances of being selected for validation. This means one’s staked assets are frozen and thus completely illiquid. Liquid staking is a version of PoS in which participants can choose to stake any digital asset for a variety of blockchains and are given a derivative to trade in the interim as their assets are frozen. It literally makes whatever assets are currently staked, liquid.
But with liquid staking users can stake any digital asset from interconnecting blockchains linked to the Tosdis EasyStake mechanism.
Users are given 1:1 derivatives when their assets are staked, and are thus able to continue to earn revenue off of these assets through block and fee rewards, maintain liquidity, trade assets, and retain custody, all at a lower risk. This also enables a constant rotation of power within the network and increases the number of members validating different transactions.
Powered by the deflationary TosdiS Token, all projects on interconnecting blockchains will be able to allow their holders to stake tokens in return for staking rewards. The fees paid by projects for using Tosdis EasyStake will go directly into the deflation mechanism burning TosdiS tokens. This process will continue until 50% of all TosdiS token have been burnt.
Staking tokens from a variety of independent blockchains (without the pesky scaling limitations) seems to be a natural next step in the crypto industry. Liquid staking is a transformative pivot away from traditional PoS, avoiding the classic “rich get richer” model that only rewards those who create the largest stakes and prevents users from temporarily losing custody of their assets.
How Tosdis EasyStake is Transforming Staking-as-a-Service
By opening up users to a more liquid, safer, and efficient method of staking, Tosdis can move towards a more environmentally conscious and egalitarian method of validation.
It is all about allowing users to earn yields on ERC-20 tokens and other digital assets to help crypto newcomers grow their investments with a simple, secure, low-friction service. Tosdis EasyStake’s features include one-click staking for rewards and automated claiming and re-staking.
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Staking is an alternative mining method and is one of the best passive income solutions in the crypto market. It provides a stable income and is also an extremely simple tool. In short, you need to buy a coin, block it in your wallet, and receive profit as a percentage. The profitability can vary depending on the platform.
Cryptocurrency staking has some major benefits:
It’s cheap. If PoW you need to buy expensive equipment and pay for electricity, PoS requires minimal computing power. A regular old laptop or mobile wallet on your smartphone is enough for staking.
It’s safe. PoS is much more resilient to 51% attack, as you would need to buy 51% of the coins to take over the network, but such an attack is economically disadvantageous.
Staking implies asset growth. Indeed, it would be best if you staked more coins to make big profits. In addition to profit from staking, the value of the coin itself is likely to grow as well.
It’s simple. There is no need to have specific knowledge. You only need to buy coins on the exchange and delegate (put) them into staking in your wallet. Then the system calculates the reward on its own.
Staking Drawbacks
However, staking also has some disadvantages. Of course, the concept of receiving rewards only for storing cryptocurrency looks quite attractive, but, unfortunately, one should not expect significant profits. In most cases, staking gives lower rewards than regular block rewards issued by the network.
The risk of centralization is very high when the bulk of assets are in large players’ hands. Also, because users strive to keep coins in their accounts as long as possible to maximize possible profits, there is a high risk of a decrease in the cryptocurrency turnover in general.
The staking mechanism also involves the withdrawal of an asset from circulation, blocking funds in the wallet. This means that the user cannot use coins until the end of the staking period. That is, his funds are illiquid.
Tosdis Solution
With EasyStake in Tosdis, users can have real freedom to manage their DeFi assets.
Liquid Staking
Tosdis and Liquid Staking are the next step in Proof-of-Stake technology. Thanks to Liquid Staking, Tosdis provides liquidity of crypto assets. Users receive at their disposal derivatives in a 1:1 ratio to the staked assets, and they can use tokens in trading or exchanging operations.
Staking as a Service
Flexible, cross-chain staking mechanism for any ERC-20 token. The unique mechanism of Tosdis means we are able to offer Staking-as-a-Service to dozens of platforms — Polkadot, Binance, Chainlink, Tron, Ethereum. EOS, etc. — via our smart contract-based DeFi staking.
Yield farming
It is a simple, secure, and reliable way to offer holders a liquidity mining service. Tosdis allows users to earn yields on ERC-20 tokens and other digital assets to help crypto newcomers grow their investments with a simple, secure, low-friction service. Tosdis EasyStake’s features include one-click staking for rewards and automated claiming and re-staking.
Find out more about the Tosdis advantages on our website.
